chapter 1 tqm introduction to quality

THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 1

Chapter 1

Introduction to Quality The

Management & Control of Quality, 7e


Modern Importance of Quality

“The first job we have is to turn out quality merchandise that consumers will buy and keep on buying. If we produce it efficiently and economically, we will earn a profit, in which you will share.”

- William Cooper Procter


Key Idea

Building—and maintaining—quality into an organization’s goods and services, and more importantly, into the infrastructure of the organization itself, is not an easy task.


Quality Assurance

...is any action directed toward providing customers with goods and services of appropriate quality.


Key Idea

Although quality initiatives can lead to business success, they cannot guarantee it, and one must not infer that business failures or stock price dives are the result of poor quality.


Contemporary Influences on QualityGlobalization Innovation/creativity/changeOutsourcingConsumer sophisticationValue creationChanges in quality


Defining Quality

Perfection

ConsistencyEliminating waste

Fast delivery

Compliance with policies and procedures

Providing a good, usable product

Doing it right the first timeDelighting or pleasing customers

Total customer service and satisfaction


Formal Definitions of Quality

Transcendent definition: excellence Product-based definition: quantities of

product attributes User-based definition: fitness for intended

use Value-based definition: quality vs. price Manufacturing-based definition:

conformance to specifications


Quality Perspectives

CustomerCustomer

DistributionDistribution

productsproducts and and servicesservices

needsneeds

transcendent &transcendent &product-basedproduct-based user-baseduser-based

manufacturing-manufacturing- basedbased

value-basedvalue-based

MarketingMarketing

DesignDesign

ManufacturingManufacturing

Information flowInformation flow

Product flowProduct flow


Key Idea

Because individuals in different business functions speak different “languages,” the need for different views of what constitutes quality at different points inside and outside an organization is necessary to create products of true quality that will satisfy customers’ needs.


Customer-Driven Quality

“Meeting or exceeding customer expectations”

Customers can be... Consumers External customers Internal customers


Total Quality People-focused management system Focus on increasing customer satisfaction

and reducing costs A systems approach that integrates

organizational functions and the entire supply chain

Stresses learning and adaptation to change Based on the scientific method


Principles of Total Quality

Customer and stakeholder focus Participation and teamwork Process focus supported by continuous

improvement and learning

…all supported by an integrated organizational infrastructure, a set of management practices,and a set of tools and techniques


Customer and Stakeholder Focus Customer is principal judge of quality Organizations must first understand

customers’ needs and expectations in order to meet and exceed them

Organizations must build relationships with customers

Customers include employees and society at large


Key Idea

To meet or exceed customer expectations, organizations must fully understand all product and service attributes that contribute to customer value and lead to satisfaction and loyalty.


Participation and Teamwork

Employees know their jobs best and therefore, how to improve them

Management must develop the systems and procedures that foster participation and teamwork

Empowerment better serves customers, and creates trust and motivation

Teamwork and partnerships must exist both horizontally and vertically


Key Idea

In any organization, the person who best understands his or her job and how to improve both the product and the process is the one performing it.


Process Focus and Continuous Improvement A process is how work creates value for

customers Processes transform inputs (facilities,

materials, capital, equipment, people, and energy) into outputs (goods and services)

Most processes are cross-functional


Key Idea

A process is a sequence of activities that is intended to achieve some result


Continuous Improvement Enhancing value through new products

and services Reducing errors, defects, waste, and costs Increasing productivity and effectiveness Improving responsiveness and cycle time

performance


Key Idea

Major improvements in response time may require significant simplification of work processes and often drive simultaneous improvements in quality and productivity.


Learning The foundation for improvement …

Understanding why changes are successful through feedback between practices and results, which leads to new goals and approaches

Learning cycle: Planning Execution of plans Assessment of progress Revision of plans based on assessment findings


TQ Infrastructure Customer relationship management – understanding

customer’s need Leadership and strategic planning – success of the

firm depends on the performance of workers at the bottom then up of the pyramid

Human resources management – fully committed, well-trained, involved workers

Process management – design of process to develop and deliver products.

Information and knowledge management


Competitive Advantage

Is driven by customer wants and needs Makes significant contribution to business

success Matches organization’s unique resources with

opportunities Is durable and lasting Provides basis for further improvement Provides direction and motivation

Quality supports each of these characteristics


Three Levels of Quality

Organizational level: meeting external customer requirements

Process level: linking external and internal customer requirements

Performer/job level: meeting internal customer requirements


Quality and Personal Values Personal initiative has a positive impact on

business success Quality-focused individuals often exceed

customer expectations Quality begins with personal attitudes Attitudes can be changed through awareness and

effort (e.g., personal quality checklists) Unless quality is internalized at the personal

level, it will never become rooted in the culture of an organization. Thus, quality must begin at a personal level (and that means you!).


Key Idea

In the daily attempt to bring about change in the individual parts of the organizational universe, managers, employees, professors, and students can find that personal quality is the key to unlock the door to a wider understanding of what the concept really is all about.

chapter 1 tqm introduction to quality

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